Tata Group-owned IHCL announces all-stock merger with Oriental Hotels

Tata Group-owned Indian Hotels Company Ltd (IHCL) on Monday said Oriental Hotels Ltd will be merged with IHCL through an all-stock transaction.

The Boards of Oriental Hotels and IHCL have approved a Scheme of Arrangement to this effect.

The Scheme of Arrangement proposes a share swap ratio of 25 IHCL shares for every 117 OHL shares, and aims to complete the transaction in the second half of FY2028.

"In line with our Accelerate 2030 strategy of creating value, simplifying the group's holding structure and unlocking the full potential of OHL portfolio including iconic assets like Taj Coromandel, Chennai, Taj Fisherman's Cove Resort & Spa, Chennai and Taj Malabar Resort & Spa, Cochin, the Boards of IHCL and OHL have today approved this merger," Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL said.

Oriental Hotels is an associate company of IHCL. The company has a portfolio of seven hotels with 825 rooms.

This includes freehold assets: Taj Coromandel - Chennai, Taj Fisherman's Cove Resort & Spa - Chennai and Gateway Coonoor, and long-tenure leasehold assets: Taj Malabar Resort & Spa - Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.

Additionally, OHL has strategic investments in several IHCL group hotel companies in India and internationally, including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd.

"The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares and is an all-stock transaction, with completion targeted in the second half of FY2028 and Appointed Date of April 1, 2027," Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL said.

"The merger will further simplify the group's holding structure by increasing IHCL's direct ownership across several entities, resulting in two new operating subsidiaries. This will streamline governance, optimise overheads, enhance operational efficiency, and support our Accelerate 2030 objectives," Dalwani said.

Pramod Ranjan, Managing Director & CEO, Oriental Hotels Ltd, said the merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL's growth journey.

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